Classification of Expenditure under New Accounting System

Government of Nepal has allocated budget head number of the expenditure according to their nature to bring uniformity in maintaining financial records in all government offices. Numerical codes are allocated for every budget expenditure account. The code number is called budget head number and the amount is called budget expenditure amount.

Salary and Benefit

21111 Salary: It includes

• Remuneration paid to staffs like salary, additional provident fund, additional pension, grade, insurance, other reward and incentives paid to employee.
• Wages and remuneration paid to temporary staff of government offices and projects.
• Amount paid to government employee for annual leaves, sick leave, and festival allowance like Dashain etc.

21112 Local Allowance: It includes allowance paid for working at remote area.

21113 Dearness Allowance: It includes the allowance declared by the government of Nepal for the employee to bear inflection.

21114 Field Allowance: It includes the allowance declared by the government to the employee for field visit and field work.

21119 Other Allowance: It includes other allowance declared by the government as meeting allowances, foreign allowance, maternity allowances, over time allowance, festival allowance etc.

21121 Uniform: It includes the expenditures of dress and uniforms like clothes, shoes, boots, caps etc. provided to government employee like postman, policemen, military, medical staffs and other government staffs.

21122 Food: It includes the cost of food to be paid for the supply of food materials to the government employees.

21123 Medical Allowance: It includes the expenditures given to government employees for the medical treatment, health insurance etc.

Service and rental charge

22111 Water and Electricity: It includes the expenditures made for water and electricity and its installation. The amount to be deposited to the concerned offices for installation of water and electricity supply is also included in this head.

22112 Communication Charge: It includes the expenditures to be paid for telephone, telex, telegram, internet, website, trunk call, e-mail, fax and other communication charges. The amount is to be deposited to the concerned offices for installation of communication services.

22121 House rent: It includes the rent of land, building, godown, but rent for public construction is added on concerned capital expenditure and recorded on B.H. No. 28141.

22122 Other rent: It includes the rent for the use of other assets like vehicles, plants, machinery and other capital assets but rent for public construction is added on the concerned capital expenditure head.

Circulation and maintenance of capital assets

22211 Fuel: It includes the cost of fuel of lubricants for vehicle but fuel used for construction work should be charged on concerned expenditure head. The fuel includes gas, kerosene, petrol, diesel, coal, firewood, batteries etc.

22212 Repair and maintenance: It includes repairs and maintenance charges paid for the maintenance of capital assets like furniture, building, bridge, machinery equipment and other capital properties which are used regularly for official purpose.

22213 Insurance: It includes the insurance of public properties like road, bridge, cannel, hydropower house, building, machinery, equipment, means of transport and third party insurance. But insurance of assets under construction are included on concerned capital expenditure head.

Office materials and services

22311 Office expenses: It includes

• Postage, parcel, registry form, record files stapling machine, punching machine, official printing, newspapers, magazine, books, etc. for office use.
• Expenditures for circulating information for tender, courier change etc.
• Stationery for the day to day operation of the office.
• Expenditures for office materials and equipment and durable office materials and equipment costing less than Rs. 2000.
• Transportation charges for transporting goods from one place to another.
• Charge paid to bank, compensation and other service expenditure.

22312 Feeding materials: It includes the expenses made for feeding materials for birds and animals.

22313 Books and materials: It consists of those costs relating to books, sports materials and educational materials freely distributed by public schools and cost of the book purchased for public libraries.

22314 Fuel for other purposes: It includes cost of fuel for the purpose like gas, kerosene, petrol, diesel, coal, firewood, battery etc. for administrative purpose. But fuel and battery for the vehicle is included in B. H No. 22212.

22321 Repair cost of public properties: It includes repairs and maintenance of public properties like road, bridge, cannels, hydropower house, building etc. and their insurance.

22411 Consultancy service charge: It includes expenditure related to study report and advisors, software renewable and service charge.

22412 Other service charge: It includes service charge paid to sweepers for cleaning office, building, maintenance of garden, service charge paid to contractor for maintenance of office, machinery and equipments like computers, photocopy machine, telephone, fax etc. service charge for carrying parcel, running vehicles service, primary health service etc.

Program expenditure

22511 Employee training: It includes the expenses on training seminar and workshop organized for developing capability and carrier of the employee.

22512 Skill development and public awareness training and seminar expenses: It includes the cost of public seminars including the allowance to the participant in the public training for increasing efficiency self-employment income generation, empowerment and building sense.

• Allowance to resource person for providing services
• TADA (travelling and daily allowance) to trainee and trainer as per government norms

22521 Production materials and services: It includes production cost of raw material, labour and production costs incurred for producing goods and services, agriculture products, domestic goods, insecticide etc. Production goods like: postal stamp, post card, domestic goods, insecticides, fishery, animal husbandry and other agricultural products etc.

22522 Other program expenses: It includes the other program expenditures not included in other heads like ritual functions workshop, like religious programs etc.

22531 Medicine: It includes the medicines provided by the government hospitals, health posts, ayurvedic aushadhalaya and medicine used in treatment to the patient and its transportation charge as well.

Investigation, evaluation and travelling expenses

22611 Investigation, evaluation and expenses: It includes expenses incurred on investigation and evaluation and preparation of report concerned on it.

22612 Travelling expenses: It includes the amount paid to an employee for travelling and daily expenses as per government rule while transferring from one office to another office including their family members as per government rule. It also includes the expenses paid to the employees for walking allowances, fair charge with government tax, daily expenses for lodging and fooding etc. for government program.

22613 Travelling program expenses of high level personalities and council of representative: It includes transportation, taxes, insurance, daily allowance, accommodation, uniform and other expenses concerned with the travelling of high level personalities and council of representative.

22614 Other travelling expenses: It includes the travelling expenses for the people who stand as withes from government’s side.

Miscellaneous expenses

22711 Miscellaneous expenses: It includes:

• Entertainment, exhibition, refreshment expenses
• Expenses for maintaining peace and securities
• Hospitality expenses and other expenses not included in other head.
  
  
  

Contingencies expenses

22911 Contingencies expenses (regular): It includes the estimated budget which is not mentioned in any other budget head for the operation of the government work. Its sanction is to be reallocated to necessary head to make expenditure. Expenditures are not made directly from its head.

Interest on foreign loan

24111 Interest on foreign loan: It includes interest and service charge paid for external loan.

Interest, service charge and bank charge on internal loan

24211 Interest on internal loan: It includes interest paid on internal loan.

24212 Service charge and commission: It includes the service charge and bank commission paid to take internal loan.

Subsidies to public enterprises

25111 Subsidies to non-financial corporation (current): It includes current subsidies to government and semi government corporations and other independent public corporations.

25112 Subsidies to non-financial corporation (capital): It includes the subsidy given to non-financial public bodies for purchase of machinery, equipments, furniture, vehicles, land and building etc.

25121 Subsidies to financial corporation (current): It includes current subsidies to government and semi government corporations and other independent public corporations.

25122 Subsidies to financial corporation (capital): It includes the subsidy given to financial public bodies for purchase of machinery, equipments, furniture, vehicles, land and building etc.

Subsidies to private institution

25211 Subsidies to non-financial institution (current): It includes current subsidies to non-financial private business firm.

25212 Subsidies to non-financial private institution (capital): It includes the subsidies given to non-financial private institution for purchase of machinery, equipments, furniture, vehicles, land and building etc.

25221 Subsidies to financial private institution (current): It includes current subsidies to financial private business firm.

25222 Subsidies to financial private institution (capital): It includes the subsidies given to financial private business firm for purchase of machinery, equipments, furniture, vehicles, land and building etc.

International membership and grant

26211 International membership and grant: It includes donation, membership and renewable fee at international level.

Grant to local bodies

26311 Current grants to local bodies (without condition): It includes the grants provided to local bodies of the government to bear current expenditure and make programs in self-decision.

26312 Current grants to local bodies (with condition): It includes the grants provided to local bodies of the government to bear the expenditure of mentioned programs.

26321 Capital grant to local bodies (without clause): It includes the grant provided to local bodies for purchase of machinery, equipments, furniture, vehicles, land and building, civil works, purchasing goods and services, etc. without any condition.

26322 Capital grant to public bodies, committee, boards (with clause): It includes the grant provided to local bodies to make expenditure for mentioned program like subsidies provided to local bodies for purchase of machinery, equipments, furniture, vehicles, land and building, civil works, purchasing goods and services etc.

Social service grant

26411 Current grants to public bodies, committee boards (without clause): It includes:

• The grant paid to board, committee, educational institutions, hospital, etc. for the mentioned program without clause.
• Foods and rasan, cloths and other facilities provided to patient at hospital or prisoner at jail, etc. without clause.

26412 Current grants to public bodies, committee boards (with clause): It includes:

• The grant paid to board, committee, educational institutions, hospital, etc. for the mentioned program with clause.
• Foods and rasan, cloths and other facilities provided to patient at hospital or prisoner at jail, etc. with clause.

26413 Current grants to other person or institution (with clause): It includes:

• Compensation provided to the parties suffering due to national disasters and other causes.
• Operational grant provided to social service organizations, temples etc.
• Financial assistance, rewards and other grants provided by the government.

26421 Current grants to government bodies, committee boards (without clause): It includes grant provided for capital assets (furniture, vehicles, machinery equipment, land and building etc.) to government bodies, committee, board, etc. created by law without clause.

26422 Capital grant to government bodies, committee, boards (with clause): It includes the grant provided for capital assets (furniture, vehicles, machinery equipment, land and building etc.) to government bodies, committee, board, etc. created by law with clause.

26423 Capital grant to other social organization (with clause): It includes capitals grant to other social institutions like educational institutions, hospital and social organizations with clause.

Social security

27111 Social security (without clause): It includes financial assistance provided to disabled, old aged people, widow etc.

27112 Other social security grant (without clause): It includes medical treatment expenditures and financial compensation paid to ordinary person or national figure.

Scholarship

27211 Scholarship: It includes the scholarship provided on cash, goods and other benefit provided to the student as scholarship at school, college and university level.

Gratuity

27311 Refinement benefit: It includes gratuity and allowances to the retired employee and allowance given to retired unable employee.

27312 Gratuity: It includes the gratuity provided to retired employee.

27313 Accumulated leave to retired: It includes amount paid to retired employee as accumulated leave.

27314 Medical allowances to retired employee: It includes the amount paid to retired employee as medical treatment.

27315: Support and benefit to expired employee: It includes:

• Amount paid to dependents of expired employee as financial support including provident fund.
• Additional amount paid to the dependents of the expired employee by the government.
  
  
  

Assets related expenditure

28111 Rent for land: It includes the rent paid for the use of land and compensation for the loss of crops.

28211 Revenue refund: It includes return of import deities, sales tax, land tax, penalties and other refund expenses.

28212 Legal refund: It includes the amount refunded by the government as per the judicial decision.

28213 Other refund: It includes the other refunds of government except revenue refund and judicial refund.

Purchase of land

29111 Purchase of land: It includes expenditure for purchase of land, compensation on acquisition of land with tax and other acquisition expenses.

Building

29211 Purchase of building: It includes expenditure for the purchase of constructed building with its premises, computation and tax paid for accruing building.

29221 Building constructions: It includes cost of construction of building, shed and compound wall and cost of their expansion like addition of rooms, stores etc.

29231 Capital maintenance expenses (Building): It includes the expenses made for the renovation of present building that add the life of it, but only maintenances of capital, assets included in B.H No. 29221.

Furniture and fixtures

29311 Furniture and fixtures: It includes the expenditure made for the purchase of furniture including transportation, insurance, VAT etc.

Vehicle

29411 Vehicle: It includes the purchase of all types of means of transport like aero-plane, helicopter, jeeps, motors, cars, bus, truck, motor cycle, cycle, horse, bulls, etc. and the cost relating to import of vehicle and vehicle engine, insurance, tax and duties etc.

Machinery equipment

29511 Machinery equipment: It includes cost of purchasing machinery like agricultural tools and various equipments, generators, transformers; office machine and equipments like typewriters, computer, printer, photocopy machine, telephone set, TV, heater, fax machine, security equipments, importing cost of machine and equipments etc. office equipment use in office costing more than Rs. 2000. But office equipments costing less than Rs. 2000 are included in budget head number 22311.

Public constructions

29611 Public constructions: It includes the cost of construction of highway, roads, bridges and expansion of highways, roads, bridges, airports, power houses, ropeway, air drove, construction of structures for public uses like forest, mining etc.

29621 Public constructions (capital): It includes the maintenance cost on building and other capital assets for extending the quality and life of the assets but does not include the cost of expansion and addition to the existing capital assets.

Capital research and consultancy

29711 Capital research and consultancy cost: It includes the cost of feasibility study, drafting cost of survey, design technical consultancy service, supervision cost, cost of research etc.

29712 Software development and purchase expenditures: It includes the cost incurred for the development of software, purchase of software and expenses incurred for upgrade of software.

Capital contingencies

29811 Capital contingencies expenditures: It includes the capital nature contingencies expenses which are not prescribed at the time of budget allocation. But that should be reallocated into necessary budget head to make expenditure. Expenses are not allowed to make directly from this head.

Some other budget heads

Note: Budget heads having zero value at the end should not be considered as expenses such as 31100, 31130, 31220 etc.

Things to remember

• Local allowance includes allowance paid for working at remote area.
• Field allowance includes the allowance declared by the government to the employee for field visit and field work.
• Feeding materials includes the expenses made for feeding materials for birds and animals.
• Scholarship  includes the scholarship provided on cash, goods and other benefit provided to the student as scholarship at school, college and university level.

• It includes every relationship which established among the people.
• There can be more than one community in a society. Community smaller than society.
• It is a network of social relationships which cannot see or touched.
• common interests and common objectives are not necessary for society.

Questions and Answers